Hong Kong is preparing to issue a new batch of government-backed digital green bonds, deepening its transition to blockchain-based finance as it seeks to position itself as a leading global hub for tokenized assets.
The offering, Hong Kong’s third digital bond sale since 2023, will be denominated in US dollars, euros, offshore yuan and Hong Kong dollars, Bloomberg reported, citing sources familiar with the issue. The price can be finally determined as early as today.
These are so-called digitally native bonds, which means that they are created and settled exclusively on blockchain-based platforms. The infrastructure for this latest issue comes from HSBC.
The green label indicates that the funds collected will go to environmental or climate-focused projects. The city has been pushing to become a blockchain hub while facing competition from other regions, including Singapore and Dubai.
Appetite for blockchain-based debt appears to be growing. Companies have issued at least six tokenized bonds in the city so far, raising a combined $1 billion, according to the report.
Recent issuers include state-backed companies such as Shenzhen Futian Investment Holdings and Shandong Hi-Speed Holdings Group.
S&P gave the notes an AA+ rating. According to the firm, risks associated with digital issuance are buffered by a fail-safe that allows the bonds to switch back to traditional systems if necessary.
